The past few weeks have been tough for Apple (NASDAQ: AAPL) shareholders. The stock’s now sitting 15% below its December high, sliding all the way back to where it was trading in late 2021. This is weakness that most investors just aren’t accustomed to seeing from this frequent Wall Street favorite.
If you’re interested in stepping into a new position in Apple, don’t let the stock’s recent performance rattle you. There are still good reasons to take on long-term trades in this consumer-technology titan. Here’s a rundown of the best three.
1. The company’s dealing with the headwind in China
Perhaps the single-biggest reason Apple shares have stumbled of late is the company’s recent performance in China. It’s not been great. The nation just isn’t evolving into the growth engine it was once expected to become.
Indeed, after clawing its way to becoming the country’s smartphone market-share leader last year (by virtue of losing less than its rivals), technology market research outfit IDC reports Apple’s iPhone lost that lead again in the first quarter of this year. It’s a microcosm of the company’s struggle in the region.
The company is finally dealing with the challenge if only by turning its attention to more promising markets. That’s southeast Asia and India, by the way. Earlier this month, CEO Tim Cook visited Singapore, committing $250 million to expand operations there. Apple’s also investing heavily in India as a manufacturing partner as well as a market for its goods and services.
Bloomberg reports India assembled $14 billion worth of iPhones last fiscal year, with the country also seeing the opening of its first-ever Apple store in 2023. Counterpoint Research reports Apple is now leading India’s smartphone market as measured by revenue, while analysts with Morgan Stanley say India alone could account for 15% of Apple’s revenue growth over the course of the coming five years.
It’s certainly a compelling start to weaning itself from China where doing business is proving increasingly tricky.
2. Apple is finally getting serious about AI
The advent of artificial…
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